A report from Redfin reveals that 44% of homebuyers and sellers believe that home prices will fall during the next recession. This is a complete shift from just 25% in December 2019. Back then, a whopping 56% of homebuyers and sellers actually believed that prices would increase during the next recession. A clear shift has taken place since then.
"It's easy to become fearful when it feels like a recession is imminent, but it's important to remember what has actually happened in past recessions," said Redfin chief economist Daryl Fairweather, according to a press release.
"Home prices declined substantially during the Great Recession, which started with a housing crash, but throughout the 2001 recession home prices actually rose due to a nascent housing bubble and a shift in investment dollars from the stock market into real estate. It's perfectly reasonable to expect that a 2020 recession won't stop home prices from rising, since the supply of homes for sale is so constricted and mortgage rates are at all-time lows."
The report also pointed out that while 62% of those under 45 believed that home prices would increase during the recession, only half of them now feel the same as they did in the previous survey.
To learn more about the Redfin survey, click here.